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Bolt Financial Inc., the fintech firm providing cloud-based checkout and payments services, will acquire crypto payments company Wyre Payments Inc. for $1.5 billion. Bolt announced the acquisition on April 7; the Wall Street Journal confirmed the value of the acquisition.
Bolt’s acquisition is among the largest in the cryptocurrency space and the largest not involving a Special Purpose Acquisition Company, or SPAC. It comes as interest in the cryptocurrency industry has reached new highs, with the total value of global cryptocurrencies more than tripling in 2021 alone.
Key Takeaways
- Payments fintech Bolt Financial Inc. will acquire crypto payments company Wyre Payments Inc. for $1.5 billion.
- The acquisition, which is the largest non-SPAC crypto acquisition yet, is expected to close by the end of 2022.
- Bolt is expected to integrate Wyre’s crypto/fiat exchange services into its payments and checkout platform, allowing merchants to accept crypto payments and allowing customers to pay for goods with cryptocurrencies.
Bolt Expands Into Crypto Space
Wyre Payments provides retail and business customers exchange services to allow for transferring of national currencies and digital tokens between crypto wallets and traditional banks. In a press release, Bolt explained that the acquisition aims to “simplify and democratize cryptocurrency transactions and bring the power of these technologies to … merchants and their consumers.” Bolt may utilize Wyre’s fiat-to-crypto payments infrastructure to bulk up its own cryptocurrency transaction offerings. Eventually, it is expected that Bolt customers will be able to accept and make cryptocurrency payments for physical goods.
Bolt’s clients include apparel retailers Forever 21, Juicy Couture, and Lucky Brand, among others. The acquisition is expected to close by the end of the year.
What are Bolt Financial and Wyre Payments?
Bolt Financial is a fintech startup that offers checkout and payment services for merchant clients and individual customers. Wyre Payments is a cryptocurrency payment services company that facilitates fiat-to-crypto transfers, among other exchanges.
Why did Bolt buy Wyre?
Bolt says that its acquisition of Wyre will enable its clients to accept cryptocurrency payments for physical goods—and allow individual customers to pay for goods with cryptocurrencies.
What is the significance of the acquisition?
Bolt and other payment companies compete in a crowded space of fintech startups. This acquisition is among the very largest cryptocurrency acquisitions in history and could help to position Bolt as a leader in the cryptocurrency payments space, which is rapidly growing.
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